Media economy
Media Declines by 3.9 percent, with big drops for print and cable TV
This story outlines what's happening in the ad agency business with little or no reflection with what is going on in markets nationwide with respect to local-direct business. Philip Jay LeNoble, Ph.D. C.A.
September 17, 2015
Last year’s World Cup boosted Univision’s ad dollars in second quarter, making for tough comparisons this year.A few years ago, this would have been a clear indication that the media economy is struggling. But these days, with advertisers pulling back on traditional media in favor of cheaper, better-targeted new media, the declines are as much an indication of the changing industry as they are a weakness in the ad economy.
TV, for example, fell 4.5 percent in second quarter, while newspapers dropped 12.7 percent. But digital grew 2.4 percent.
Many advertisers are shifting money from those media to digital. Since digital also costs less, advertisers can spend less money to reach the same number of people, which leads to a decline in total ad dollars.
With those trends at play, analysts are no longer expecting major ad spending growth.
“Measured ad growth is on track to lag nominal GDP for the fifth consecutive year since emerging from the Great Recession, a streak that might have once seemed unimaginable but now would seem to be par for the course,” says Jon Swallen, chief research officer at Kantar Media North America.
Cable took a particularly hard hit in second quarter, with spending down 5.1 percent. Kantar says auto manufacturers, movies, restaurants and telecom pulled back on cable ads.
Of course, Spanish-language TV also plummeted, off 22.4 percent, but half of that was due to tough comparisons. Last year during second quarter Univision carried the hugely popular World Cup.
Print took another deep blow.
Not only were newspapers off nearly 13 percent, including a 13.9 percent drop for local papers, but magazines were off 7.7 percent.
Sunday magazines especially struggled, down 41.9 percent, partly due to the closure of USA Weekend late last year.
Kantar notes that the newspaper decline is largely due to shifting budgets from print to digital.
And digital is booming. Paid search was up 7.7 percent, and a slew of other new media not yet measured by Kantar, such as mobile, video and social media, are not even factored into those gains.
Top 10 Advertising CategoriesSecond Quarter 2015 ($ Millions) | ||
Media Type (In rank order of Q2 2015 spending)
|
Q2 2015 v 2014
|
Jan-June 2015-2014
|
TELEVISION PLATFORMS
|
-4.5%
|
-3.8%
|
· Cable TV
|
-5.1%
|
-0.8%
|
· Network TV
|
1.0%
|
-4.8%
|
· Spot TV
|
-1.8%
|
-4.4%
|
· Spanish Language TV
|
-22.4%
|
-11.3%
|
· Syndication – National
|
-3.3%
|
-4.1%
|
DIGITAL PLATFORMS
|
2.4%
|
1.3%
|
· Paid Search
|
7.7%
|
7.6%
|
· Online Display (PC Desktop Only)
|
-4.7%
|
-7.0%
|
MAGAZINE PLATFORMS
|
-7.7%
|
-8.2%
|
· Consumer Magazines
|
-5.5%
|
-6.2%
|
· B-to-B Magazines
|
-6.3%
|
-5.3%
|
· Sunday Magazines
|
-41.9%
|
-37.0%
|
· Local Magazines
|
-1.2%
|
-2.4%
|
· Spanish Language Magazines
|
-13.7%
|
-15.8%
|
NEWSPAPER PLATFORMS
|
-12.7%
|
-14.0%
|
· Local Newspapers
|
-13.9%
|
-14.9%
|
· National Newspapers
|
-4.2%
|
-8.9%
|
· Spanish Language Newspapers
|
-18.9%
|
-11.3%
|
RADIO PLATFORMS
|
5.0%
|
3.4%
|
· Local Radio
|
10.6%
|
7.9%
|
· National Spot Radio
|
1.2%
|
-1.6%
|
· Network Radio
|
-8.4%
|
-5.4%
|
· Hispanic Local Radio
|
4.2%
|
5.2%
|
OUT OF HOME PLATFORMS
|
4.0%
|
4.1%
|
· Outdoor
|
2.2%
|
2.6%
|
· Cinema
|
14.9%
|
16.1%
|
FSIs
|
-15.6%
|
-9.7%
|
TOTAL
|
-3.9%
|
-3.9%
|
Source: Kantar Media
| ||
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